The Republican governor galled many Milwaukee political leaders during the bruising June 2012 recall election against Milwaukee Mayor Tom Barrett. Walker detractors bristled at commercials that depicted Milwaukee as a scary place and called Walker’s $100 million “Transform Milwaukee” initiative a cynical pre-election rebranding of normal state functions.

The question remains whether the trust level between the Walker administration and Milwaukee city leaders has improved to that of a healthy working relationship. The Walker administration’s connection to Milwaukee remains fragile and skeptics remain on both sides. But the possibility of a greater partnership could unlock a new era of state-aided projects in the city.

Walker continues to brush aside the criticisms. He told The Business Journal his programs already are boosting Milwaukee’s economy and his policies will lift Milwaukee in the long run.

“Look at all the things that this administration has done and it’s pretty hard to argue that we don’t have a positive place for the city of Milwaukee,” Walker said in a recent interview at The Business Journal’s downtown Milwaukee office.

More recently, the Walker administration has upped its outreach and city officials have accepted. His cabinet secretaries and department heads have discussed with Barrett staffers redevelopment projects such as Century City and infrastructure projects like rebuilding North 27th Street near Wisconsin Avenue.

Barrett appointee Rocky Marcoux, commissioner of the Department of City Development, said Walker will not be able to achieve his goal of creating 250,000 jobs in Wisconsin without an upturn in Milwaukee employment. That means directing state dollars to the city.

“What’s good for Milwaukee is good for the state of Wisconsin,” Marcoux said. “We need each other.”

The potential for state help on city projects would be good news for the Century City redevelopment on Milwaukee’s north side at the former A.O. Smith/Tower Automotive complex. State assistance also could jump-start the Midwest Energy Research Consortium’s Energy Innovation Center on Milwaukee’s near northwest side in the old Eaton Corp. building.

From a long-term perspective, state support for job training programs in Milwaukee could dent the high unemployment rate in the central city. Walker said Transform Milwaukee includes several million dollars for job training programs to go with $17 million in employment training for food stamp recipients statewide.

“We want the skill sets people need to move into the workplace,” Walker said. “We think that, as much as anything, will help improve the economy.”

Walker’s snuggle of Milwaukee — and city officials’ willingness to not brush him off — may be a case of time healing wounds. Or at least of city leaders taking an “if you can’t beat ‘em, work with ‘em” approach.

Hard feelings remain from the Walker-Barrett recall election. Also fresh in city leaders’ minds is Walker and the Republican-controlled Legislature’s budget this spring that eliminated residency requirements for city employees.

Barrett and some aldermen have argued that many employees of the city and Milwaukee Public Schools will leave Milwaukee, reducing the residential tax base.

Ald. Michael Murphy said the city needs larger policy changes from Walker to reduce its pension costs for police and firefighters and to address the concentration of poverty in the city. The only cooperation Murphy has seen between Milwaukee officials and the Walker administration has involved lobbying from city business leaders, most notably cost-sharing on moving two ramps in the Lake Interchange in downtown Milwaukee to clear land for development.

“That was good, but these are small pocket situations where they’re throwing money here and there,” Murphy said.

Murphy and others continue to disagree with Walker’s contention that New Markets Tax Credits, which account for the largest percentage of the $100 million, truly represent a state contribution to the city. The Wisconsin Housing and Economic Development Authority (WHEDA) acts as a pass-through for the federal tax credits and the city always has received a significant share of those credits.

Walker responded that WHEDA officials control where the tax credits go in the state.

“They don’t have to be in Milwaukee,” he said.

Marcoux said Barrett deserves a share of credit with Walker for arranging the lakefront ramp project.

Barrett said he was pleased to work with Walker on the freeway ramp project after the state Department of Transportation (DOT) initially rejected the cost-sharing.

The mayor said he has held many discussions with DOT officials on a variety of issues and met with other state cabinet secretaries and department heads. He said his office is interested in a solid relationship with the state despite policy differences.

“Obviously, we had a difficult budget, but I need to look to the future,” Barrett said.

MAKING HEADWAY

Leaders of organizations benefiting from Walker administration funding and programs speak highly of the governor. They also compliment two state agencies that are playing roles in city projects: WHEDA and the Wisconsin Economic Development Corp.

Milwaukee philanthropist and former business owner Michael Cudahy credits Walker with stepping forward with state funds for the lakefront freeway ramp project.

“He’s been a real champion of building Milwaukee,” Cudahy said. “I’m very impressed by his way of getting things done.”

At the Global Water Center in Milwaukee’s Walker’s Point neighborhood, WEDC has an office and is providing grants to water technology startups. New Markets Tax Credits through WHEDA were essential to financing the project.

“WEDC has been really helpful with everything we’re doing,” said Dean Amhaus, president and chief executive officer of the organization that runs the Global Water Center.

Marcoux has been the main Barrett administration link to Walker and says he is working with the governor at the behest of Barrett.

“The marching orders the mayor has always given me are to work with anyone and everyone in growing jobs and the economy,” Marcoux said.

Marcoux said he has held several conversations with Walker on partnering and cooperating. Marcoux said he has given Walker cabinet secretaries tours of the city to identify projects the state could help, including Century City and the Menomonee Valley.

Walker said he wants to support city projects from the 30th Street industrial corridor on the north side to the Aerotropolis economic development initiative around General Mitchell International Airport.

“I haven’t heard of a long list of projects we’re turning down,” Walker said. “We’re open to anything they’ve got.”